UK day ahead gas price pushes up on industrial demand

British spot gas prices fell on Friday as supplies outpaced demand for a second straight day, while gas for weekend and Monday delivery rose in expectation of slightly higher demand.

The price of gas for immediate delivery fell 0.9 pence to 65.60 pence per therm on Friday thanks to an oversupplied transmission system, while Monday gas rose half a penny to 66.35 pence.

Monday gas demand was revised 5 million cubic metres higher by analysts at Thomson Reuters Point Carbon on Friday, because of expected increased demand from industrial users.

The analysts also expect Norwegian flows via the Langeled pipeline – Britain’s key gas supply route – to shut down from Saturday owing to maintenance at the Kollsnes gas processing plant which feeds the pipe.

In parallel with the shutdown at Norway’s Kollsnes plant, the receiving terminal for Norwegian gas in the UK at Easington will also shut for planned works. Demand for gas was estimated at 134.3 mcm/day with the system oversupplied by 6 mcm.